GBPUSD retracing its run lower and looks back toward 1.4000 area
The dollar has weaken further.
- The EURUSD have moved into the ceiling area defined by swing highs between 1.22826 and 1.22961. Key area for it.
- The GBPUSD is back toward the 1.4000 area. In April and June 2017, there were swing lows at 1.4004 and 1.4011. The high from earlier today stalled at 1.40026. See prior post outlining the level....
- The USDJPY moved to new session lows and moves closer to the low from last week at 110.186. The low just reached 110.299
US yields are down with the 10 year down -3.5 bp to 2.6149%. The 10 year remains well above the comparable yields in Europe (Germany 0.556%, France 0.835%. Spain 1.348%)
The dollar is also moving lower in the face of tax reform and the expected repatriation of foreign earnings back to the US, and the expected 3 tightenings in 2018.